Terex Corporation (NYSE: TEX) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it compare to its rivals? We will compare Terex Corporation to related businesses based on the strength of its dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Terex Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terex Corporation -2.62% 7.01% 2.60%
Terex Corporation Competitors 4.06% 13.41% 3.96%

Risk & Volatility

Terex Corporation has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Terex Corporation’s rivals have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Terex Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex Corporation 2 7 5 0 2.21
Terex Corporation Competitors 171 876 950 17 2.40

Terex Corporation presently has a consensus price target of $40.33, indicating a potential downside of 10.01%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 13.09%. Given Terex Corporation’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Terex Corporation has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Terex Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Terex Corporation $4.44 billion -$176.10 million -52.12
Terex Corporation Competitors $6.06 billion $48.37 million 167.32

Terex Corporation’s rivals have higher revenue and earnings than Terex Corporation. Terex Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

89.2% of Terex Corporation shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.5% of Terex Corporation shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Terex Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Terex Corporation pays out -37.2% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. Terex Corporation has raised its dividend for 3 consecutive years.

Summary

Terex Corporation rivals beat Terex Corporation on 12 of the 15 factors compared.

Terex Corporation Company Profile

Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.

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